Ford to cut thousands of jobs in Europe blaming poor EV sales

Motor company Ford is to cut its workforce by 4,000 in Europe by the end of 2027, with the bulk of employees going in Germany, as it blames the decision on pressure from increased competition and weaker than expected sales of electric cars, as well as economic headwinds.

The job reductions, which will account for around 14% of the company’s total European workforce, are expected to happen by the end of 2027. They will include 3,000 jobs in Germany, as well as 800 jobs in the UK.

Discussions with the unions are ongoing and a final decision will be taken once they are concluded, the company said.

It is also to cut working time for workers at its Cologne, Germany plant where it makes the Capri and Explorer electric vehicles.

Dave Johnston, Ford’s European vice president for transformation and partnerships, said in a statement: “It is critical to take difficult but decisive action to ensure Ford’s future competitiveness in Europe”.

The company said that “the global auto industry continues to be in a period of significant disruption as it shifts to electrified mobility”.

The statement went on: “The transformation is particularly intense in Europe where automakers face significant competitive and economic headwinds while also tackling a misalignment between CO2 regulations and consumer demand for electrified vehicles.”

Company cuts back on numbers as it seeks profits

Ford has already decreased the number of vehicles being produced, in order to focus on the ones generating the most profit, to survive better in a difficult market.

European car makers must sell enough electric vehicles to meet new, lower limits for fleet average carbon dioxide emissions in 2025. EV sales have been slower than hoped as consumers have held back on spending and after major car market Germany dropped government purchase incentives for EVs.

Several other car makers have already slashed jobs and shut down plants. Competitors such as General Motors recently announced 1,000 global job cuts, whereas Nissan will also be axing 9,000 jobs, while reducing its global production capacity by 20%. 

Other companies such as Volkswagen have also revealed that they could be closing down about three plants in Germany, with a potential loss of thousands of jobs. 

The European Automobile Manufacturers’ Association has called for a speedier review of lower C02 limits planned for 2026.